HomeMy WebLinkAboutReso 93-423 - Reso 93-423 - Authorize implementation of Amendments to the Rehabilitation Loan Policy, Mobilehome Repair Program policy adopted by City Council Reso 75-86 f •
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'i RESOLUTION NO.
j� A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF REDDING AUTHORIZING
IMPLEMENTATION OF AMENDMENTS TO THE REHABILITATION LOAN POLICY,
MOBILEHOME REPAIR PROGRAM POLICY ADOPTED BY CITY COUNCIL RESOLUTION
NO. 75-86
WHEREAS, the City of Redding has previously adopted a Rehabilitation Loan Policy and
Mobilehome Repair Program Policy; and
WHEREAS, the City Council deems it to be in the best interest of the citizens of the City of Redding
that the aforementioned policies be further amended as set forth in Exhibits "A" and "B" attached
hereto; and
WHEREAS, it has been determined that this matter is categorically exempt from the
provisions of CEOA.
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NOW,THEREFORE, BE IT RESOLVED that the amendments to the Rehabilitation Loan Policy
and Mobilehome Repair Program Policy attached hereto as Exhibits "A" and "B" are hereby approved
and adopted.
I HEREBY CERTIFY that the foregoing resolution was introduced and read at a regular
meeting of the City Council of the City of Redding on the 21st day of December 1993, and was duly
adopted at said meeting by the following vote:
AYES: COUNCIL MEMBERS: Anderson, Kehoe, Noss and Arness
NOES: COUNCIL MEMBERS: None
ABSENT: COUNCIL MEMBERS: Dahl
ABSTAIN: COUNCIL MEMBERS: None
CARL ARNESS, Mayor
City of Redding
ATTEST:
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` CONNIE ST ROHMYER, City Clerk
FORM APPROVED: r
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RAN ALL A. HAYS, Cit Attorney
DM:\A:\AMENDHRP.CC
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EXHIBIT "A"
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(December 20, 1993 Amendment to City of Redding Mobilehome Repair Policy)
City of Redding Mobilehome Repair Program (MRP1 Pape -3-
LOW INCOME shall mean those incomes which do not exceed 60 percent of the Redding area-wide
median income as established by the latest published guidelines from the Metropolitan Statistical Area.
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MOBILE HOME shall mean a transportable dwelling that is not self-contained and that is used as a
permanent residence, connected to utilities, with or without a permanent foundation.
MODERATE INCOME shall mean those incomes which exceed 80 percent but less than 120 percent
of the median income as established by the U.S. Department of Housing and Urban Development.
MONTHLY HOUSING EXPENSES shall mean those expenses allowable as legitimate housing expenses.
MORTGAGE shall mean an instrument recognized by law by which property is hypothecated to secure
the payment of a debt or obligation; procedure for foreclosure in event of default is established by
statute.
OWNER-OCCUPANT shall mean an individual or family who occupies and owns or who is buying a unit
of residential property and will occupy such residence.
PROMISSORY NOTE shall mean a written promise to pay or repay a specified sum of money at a stated
time or on demand.
REHABILITATION COST shall mean the total cost of repairs and improvements and other costs for
rehabilitation to be incurred by the applicant that are eligible for inclusion in a rehabilitation loan.
UTILITIES shall mean gas, electricity, water, sewage disposal and refuse collection.
SECT/ON 3- DESCRIPTION OF LOAN PROGRAM
A. Deferred Payment Loans For Elderly and/or Disabled:
1. Purpose. The purpose of a Deferred Payment Rehabilitation Loan for the Elderly and/or
Disabled is to pay the costs of rehabilitation without increasing current monthly housing
expenses of those families on fixed incomes, particularly the elderly and disabled.
2. Eligibility. To qualify for a Deferred Payment Loan for the Elderly and/or Disabled in the
Mobilehome Repair Program, the applicant must meet all of the general eligibility
requirements, except his/her monthly housing expense need not exceed 25% of gross
income and must meet one of the following requirements:
a. Be at least 60 years of age.
b. Be disabled according to the criteria established by the Social Security Administration.
3. Amount. The amount of a Deferred Payment Loan shall not exceed the lesser of:
a. The actual (and approved) cost of all necessary repairs and allowable loan costs.
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b. A maximum of $4,000.00
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c. The loan amount may be increased up to a maximum of$6,000 in those cases where
the cost to repair one of the unit's major systems (i.e., roof, heating/cooling, etc.)
causes the project to exceed the $4,000 loan limit while addressing health and safety
violations.
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EXHIBIT "A"
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(December 20, 1993 Amendment to City of Redding Mobilehome Repair Policy)
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City of Redding Mobilehome Repair Program (MRP) Page -4 -
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4. Repayment. If not repaid earlier, the loan shall become due and payable at the time of a
property transfer, death of owner(s), or at a date specified in the loan documents, whichever
first occurs.
5. Terms and Conditions:
a. The entire amount of a Deferred Payment Loan for the Elderly and/or Disabled shall be
secured by a note and a security agreement on the property.
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b. The borrower shall maintain current payments on hazard insurance. The minimum
amount of hazard insurance must cover all liens on the property and shall name the City
of Redding as loss payee on the property. The City shall obtain annual verification of
paid taxes and effective hazard insurance.
c. A Deferred Payment Loan shall bear interest at the rate of three percent (3%) simple
interest per year.
d. A Deferred Payment Loan shall be deferred for the lifetime of the borrower, unless
+ otherwise specified in the loan documents, provided that if the property is used for
!I rental income, then the deferred loan shall be due and payable. If this occurs, the City
has the right to foreclose on the loan.
e. As part of the administration of the Program, the applicant will be required to pay for
loan costs. These costs may be funded from the loan proceeds or paid directly by the
borrower and are as follows:
- Pest Control Report Fees, if applicable
- Title Investigation Fees
- Credit Report Fees
- Lender Processing Fees
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B. Deferred Payment Loans
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1. Pros . The purpose of a Deferred Payment Rehabilitation Loan is to pay the costs of
!I rehabilitation without increasing current monthly housing expenses of low-and fixed-income
households.
2. Elioibility. In order to qualify for a Deferred Payment Loan in the Mobilehome Repair
Program,the applicant must meet all of the general eligibility requirements detailed in Section
4 of this document.
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3. Amount. The amount of a Deferred Payment Loan shall not exceed the lesser of:
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a. The actual (and approved) cost of all necessary repairs and allowable loan costs.
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b. A maximum of 94,000.00
c. The loan amount may be Increased up to a maximum of $6,000 in those cases
where the cost to repair one of the unit's major systems f1.e.,roof,heating/cooling,
ii etc.) causes the project to exceed the $4,000 loan limit while addressing health
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and safety violations.
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EXIIIBIT "B" •
! (December 20, 1993 Amendment to City of Redding Rehabilitation Loan Policy)
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City of Redding Rehabilitation Loan Policy Page - 17-
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Maximum Term: The maximum terms for a rehabilitation loan shall be fifteen years. Loans may be
repaid in full at any time without any penalties.
'I Maximum Term - Deferred Payment Loans to Non-Profit Corporations: The maximum terms for a
rehabilitation loan to a non-profit agency shall be twenty years. Loans may be repaid in full at any time
without any penalties.
SECTION 10 - SPECIAL PROGRAMS
I� A. Loans to Eliminate Serious Health and Safety Hazards: The Housing Loan Administration
Committee may approve loans in areas other than the designated neighborhood strategy areas in
'I those cases where it is determined that a serious health or safety hazard exists.
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B. Relocation Grants and Advisory Services: Relocation grants and advisory services shall be
provided to individuals or families who must move from their dwelling during the course of
rehabilitation under the City of Redding Loan program or the HOME Investment Partnerships
program. These services shall consist of:
1. Actual moving and storage costs.
2. Actual rent and deposits for temporary replacement housing.
3. Relocation advisory service.
All requests for relocation payments shall be reviewed and approved or denied by the Loan
Committee at the time the rehabilitation loan or grant is considered by the committee. Rental
projects must be in compliance with regulations of the Tenant Assistance Policy under the Rental
Rehabilitation Grant program.
C. Emergency Deferred Loans: Deferred loans will be made available in designated rehabilitation
loan areas to those persons who are unable to make a monthly loan payment but do not meet the
criteria of the deferred loan program. Eligible costs under this program include loan processing
fees and code items. General property improvements are not eligible.
D. Home Repair Program Grants: Grant assistance, up to a maximum of SAA $950, shall be
provided to eligible individuals or families requiring the completion of handicapped accessibility
improvements or immediate health/safety repairs. This special program is designed to assist both
owner-occupants and renters who are lower-income, elderly or disabled. The purpose of the
program is to cover the service gap that exists for eligible participants who need repairs but
provision of a loan is not feasible or cost-effective. Landlords who participate in the program
are.obligated to match the grant amount with private dollars and are limited to handicapped
accessibility improvements only. Program recipients (either homeowners or tenants) must meet
the applicable definitions of"low income" or "disabled" as detailed in Section 2. Eligible repairs
may include basic repairs of plumbing, electrical, flooring, mechanical and installation of grab
bars. Other repairs necessary to provide handicapped accessibility or eliminate critical
health/safety problems may also be included.
EXHIBIT "B" •
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(December 20, 1993 Amendment to City of Redding Rehabilitation Loan Policy)
City of Redding Rehabilitation Loan Policy Page - 3 -
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FAMILY shall mean all individuals who reside in a dwelling unit related by blood,marriage, or kinship.
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FAMILY INCOME shall mean adjusted gross income.
,i GENERAL PROPERTY IMPROVEMENTS shall mean improvements other than code
violations and
incipient code violations which are eligible for rehabilitation loan money.
HOME INVESTMENT PARTNERSHIPS ACT of the National Affordable Housing Act of 1990 shall
mean the Federal legislation which provides funding for the current program activities in the City of
Redding including tenant-based rental subsidies,assistance to first-time home buyers,property acquisition,
new construction, reconstruction, moderate or substantial rehabilitation, site improvements, demolition,
,I relocation and other reasonable and necessary expenses related to the development of affordable housing.
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HOUSEHOLD shall mean all individuals who reside in or have an ownership interest in a dwelling unit
regardless of family ties.
HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974 shall mean the Federal enabling
legislation which provides funding for the current program of Housing and Community Development in
the City of Redding.
INCIPIENT CODE VIOLATIONS shall mean a condition or element of a structure which will deteriorate
into an actual violation within a year or two of inspection.
INCOME/HOUSING EXPENSES shall mean the ratio of adjusted gross income to housing expenses.
INTEREST shall mean a charge for borrowed money, repaid with the amount of the loan.
INVESTOR/OWNER shall mean an individual or individuals or family who owns or is buying a unit(s)
for the purpose of renting as residential property.
LAND CONTRACT shall mean a contract ordinarily used in connection with the sale of property in cases
where the seller does not wish to convey title until all or a certain part of the purchase price is paid by
the buyer; often used when property is sold on a small down payment.
LIEN shall mean a form of encumbrance which usually makes property security for the payment of a debt
or discharge of an obligation. Example: judgments, taxes, mortgages, deeds of trust.
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LOAN COMMITTEE shall mean a committee consisting of three members of the City staff derived
from the following positions: the City Manager, the Assistant City Manager, the Director of Finance,
the City Attorney and the Director of Planning and Community Development. The Loan Committee
shall be charged with approving or disapproving loan applications consistent with the policies of the
Redding Redevelopment Agency.
LOW INCOME shall mean those incomes which do not exceed 80 percent of the median income as
established,by the Department of Housing and Urban Development